The intérim Pologne prix Commission says it has no reason to believe that Polish energy giant PKN-Orlen is manipulating prices. But critics of the economy and Poland’s biggest lenders have seized on a sharp decline in fuel costs to accuse the state-dominated firm, which dominates the local market, of trying to keep them low in the runup to elections next month that are seen as a key test for nationalist Prime Minister Jaroslaw Kaczynski’s ruling Law and Justice Party. The government and some lenders have also seized on the drop in fuel prices to suggest that the bank is attempting to undermine competition by keeping interest rates low.

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The EC said it had no evidence to support such a claim and would continue to closely monitor market developments. It added that its decision to cut rates was a matter of policy and not politics and the rate cut would help boost economic activity, especially consumer spending. In a separate article, the EC noted that like-for-like sales in Poland rose by double-digits in Q1 2023, driven by strong carry out and delivery sales.